Growing Business using Mobile applications is a trending and money-making option in today’s business era! The global mobile app business is growing daily, especially after the pandemic. The pandemic situation has widened business opportunities through mobile applications.

Once the product has been chosen, the customer can make safe and secure payments using the payment gateway integrated with the mobile app. Placed orders can be tracked. It is possible to return the purchased goods if it is not satisfactory with the terms and conditions applied. Let us briefly discuss some of the facts regarding the earning potential of the mobile app. 

How to Earn Money From Mobile App

Developing a Mobile Application – An Overview:

Developing a mobile app incorporates many steps before and after the development process. Before the development phase of the mobile application, there is some fundamental groundwork that needs to be done. They are, 

  • Understanding of the Target Audience with their clear requirements. This is the core

requirement from which the other modules and features will be developed as required. 

  • Once the target audience is clearly understood, the next thing to be focused is the 

competitor analysis. The competitor analysis can be performed on factors such as Target market, Features, Pricing, Software Tools, Integrations used, and the reputation they have in the industry. 

  • Choose the technical skills needed according to the requirements of the features involved in 

the mobile application. It purely depends on the core requirements of the business. 

  • Choose the best suitable mobile app development team by doing a complete analysis 

of their ability and previously delivered stuff. 

Things to be done after the development of the mobile application:

  • Testing, the developed app undergoes several levels of testing
  • Launch – The app need to be lauched  in the respective channels such as App Store or Play Store. Launching the mobile app is chargeable.

Do various promotional ideas such as SEO marketing, Social media announcements, Email 

marketing, etc. 

  • Think of a better Maintenance contract if you have the idea of periodical upgrading. 

Related: Importance of Mobile App Development For Business

How can we earn from the app?

In-app Purchase:

In-app purchase is the option available in most mobile app businesses where the user is chargeable to use some of the vital features of the application. Most of the E-commerce applications come under this category only. The products listed in the application purchased via the mobile app are in-app purchases. The subscription model mobile app is also one of the in-app purchases. The subscription model is nothing but using some basic features for free and if the customer wants the advanced features, they have to pay the charges as per the plans they have chosen.  The in-app purchases generate revenue by the product or service they are selling through the mobile application. The perfect example of this kind of revenue model is the online food delivery apps, Uber app, and all other E-commerce apps such as Amazon, and Flipkart. 

In-app advertising:

In-app advertising is another revenue model of the mobile app. Some mobile apps may have huge customer views. In such mobile applications, some other brands who strive to grow their brand will come forward to showcase their business strategies as advertisements. This is due to the increased number of customer engagement in the mobile application. By forecasting, their brand name is viewed by many customers of the mobile application. This is one way of reaching the customers by the startup brands. For publishing the advertisement in the app, the brand owner should pay some amount as a service charge to share the service space. This is known as In-app advertising and this is another way of revenue generation through mobile apps. 

Paid Downloads:

Few reputed and most valuable apps charge to download the app from the Play Store or App Store wherever can be. Users need to pay for the owner to download the app. If the money value is highly compromising to the app’s performance, the user will pay for downloading. It purely depends on the inevitability of the mobile application. 

Subscriptions:

Subscriptions are another model of revenue generation using the mobile application. Some mobile apps provide free service up to a certain extent. To explore the services further, the user has to upgrade it with any of the suitable subscription plans according to their requirement. By subscribing to the mobile app’s plan the user becomes their valuable customer and the user will pay some amount monthly or quarterly half-yearly or annually. The service provider gets some profit from the user in the form of a subscription. Once the subscribed period elapsed, the user will have to renew the plan as per the need. This ensures consistent business up to the subscribed period between the customer and the service provider. This model will be successful if the subscription plans are highly valuable and unique. 

Related: 10 Emerging Mobile App Development Trends to Watch in 2024

Factors that help in getting Revenue  from mobile applications:

Up to now, we have discussed various types of revenue generation by the mobile application. Now, it’s time to analyze the various factors that affect the revenue of the mobile application. 

  • User geolocation: The location from where the user operating the mobile application. For example, people in developing countries prefer to operate Android applications with free features. They upgrade their app if and only if the required work gets done with a subscription. People in developed countries use iOS apps and they are always ready to spend a lot on purchases. 
  • Field of the app service: The sector in which the mobile application is developed is also an 

factor that needs to be considered. For instance, content such as health, fitness, entertainment, and E-commerce applications will be reached easily and scope for high revenue. 

  • Seasonal Offers: Seasonal offers implemented in the business can increase the revenue of 

the mobile application where the offers are published. Users will use the app for purchase if the offer announced is more valuable than purchasing it in a physical store. 

  • Number of followers and User engagement: As the number of users using the mobile 

application increases, the revenue of the mobile application will also increase. This factor increases the revenue in all the types of revenue generation models such as In-app purchases, Paid, download, In-app advertisement, and subscription models. As long as the app possesses a large volume of customers, the scope for generating revenue is in all dimensions. 

Related: What is the cost of Mobile App development? 

Earning potential of various categories of mobile applications:

Let’s focus on how much revenue the various categories of mobile applications generate with some real-time instances. 

Fitness Apps:

After the pandemic disaster, people all around the world seriously seek health and fitness-related content. Apps that are related to healthy diet tracking, fitness workouts, calorie trackers, and so on will reach more audiences. By focusing on developing and launching such kinds of apps, business providers can earn a lot. 

Gaming App:

Gaming is an all-time favorite application for almost all age groups of audiences. The statistical survey result says that gaming apps are the highest-earning applications. These gaming apps generate revenue by In-app purchase methodology. This means the player or user has to pay after crossing a certain level in the game. If the game is more interesting the user will pay for the further level of the game. 

E-commerce Apps:

E-commerce apps are the leading revenue-generating app as people all around the world are attracted by online purchases. For every sale that happens through the e-commerce application, there will be some commission amount to be paid. E-commerce apps provide space for advertisements on their platform. By sharing the screen space on their platform, mobile application providers can earn a certain amount. 

Entertainment Apps:

Entertainment apps are the second most important revenue-generating apps. By telecasting impressive and engaging movies and content, these entertainment apps can earn more and more than anything else. 

Finance Apps:

Finance apps are the next more revenue-generating apps. These apps provide space for their customers to analyze the financial tactics to invest and withdraw whenever needed. These kinds of finance apps charge for each trading and banking apps charge some commission amount on every transaction. 

Conclusion:

Mobile applications are the new money-generating factor after the pandemic. In this blog, we have discussed a few of the factors in revenue generation using the mobile application. In real-time, small apps, if it has over 15000 customers, and generates payment of $1 per user, then the revenue of the app is $15000. On the other hand, top trending gaming apps generate $1,00,000 per month. (According to the statistics the data given are approximately referred to and not accurate concerning the current date.)

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